Author: openjargon

Superannuation is one of the best tools investors can use to build wealth due to its lower tax rate. Australians can also use superannuation to invest in certain assets for high passive income.

We don’t necessarily need to access the passive income immediately for it to be a good investment. Australians may appreciate owning investments with stable earnings that deliver consistent payouts year to year.

Given that superannuation has a lower tax rate than individual tax rates for full-time earners, there’s less of a headwind for the after-tax passive income returns compared to investments made outside of super.

There are many different passive income investments available to people who utilise self-managed superannuation funds (SMSFs). Other super funds can allow investors to invest in assets such as S&P/ASX 300 Index (ASX: XKO) shares – many businesses in that index are appealing options for income.

How to generate $2,500 of monthly passive income from superannuation

Each household has a different financial situation. There isn’t a one-size-fits-all approach that I can outline that would say what everyone’s net income would be. With that in mind, I’ll just talk about gross income, which is before taxes and expenses.

Generating $2,500 of monthly passive income translates into $30,000 per year.

The amount you need to invest to reach that income goal depends on the dividend yield, or interest rate, of the investments.

I’ll give you an example. If someone had $1 million invested with a 3% dividend yield, it would generate $30,000 of annual income.

If the dividend yield were higher, an investor wouldn’t need as much invested in superannuation to create that same level of annual or monthly passive income.

For example, if an investor’s portfolio had a 4% dividend yield, an investor would require $750,000.

A 5% dividend yield would mean investors require a $600,000 portfolio.

If the dividend yield was 6% then the portfolio value required would only be $500,000.

Where I’d invest for a high dividend yield

If I were looking for a high level of monthly passive income, I’d focus on businesses with a good dividend yield but also have delivered reliability.

Some of the names I’d consider would be MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW), Hearts and Minds Investments Ltd (ASX: HM1), Rural Funds Group (ASX: RFF) and PM Capital Global Opportunities Fund Ltd (ASX: PGF).

But, I also wouldn’t ignore investments with somewhat lower yields that have a track record of regular dividend growth as well as appealing capital growth.

The post How much is needed in superannuation to target a $2,500 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• How to build an ASX portfolio you do not need to check every day
• Why these 3 top ASX dividend shares are my biggest holdings
• 2 ASX passive income ideas I’d use to generate $300 a month in 2027
• Forget term deposits! I’d buy these ASX dividend shares instead
• How much do I need to retire on $120,000 a year at 55?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, Mff Capital Investments, Rural Funds Group, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

These three ASX shares have taken a beating over the past year, but their market leadership and long-term growth potential could make them worth a closer look.

WiseTech Global Ltd (ASX: WTC), Pro Medicus Ltd (ASX: PME) and NextDC Ltd (ASX: NXT) are down 60%, 39% and 5%, respectively, at the time of writing.

While Buffett typically favours predictable, cash-generative businesses with durable competitive advantages, these three companies offer some of those qualities, albeit with varying degrees of risk.

WiseTech Global: logistics software at a crossroads

WiseTech’s CargoWise platform powers critical operations across the global freight and logistics industry. Its deep integration into customers’ workflows creates switching costs and a network effect that can be difficult for competitors to replicate.

However, the ASX tech share has endured a messy period, with governance concerns and controversies surrounding founder leadership damaging investor confidence.

Now, WiseTech is making a dramatic transformation, including cutting roughly one-third of its workforce as it integrates AI into its core offerings. That’s a significant execution risk, but it could ultimately create a leaner and more efficient business.

TradingView data shows most analysts rate WiseTech shares a buy or strong buy, with an average price target of $60.63, implying around 33% upside.

It’s more speculative than Buffett’s typical compounders, but the company’s platform remains a potentially valuable asset.

Pro Medicus: a powerful healthcare moat

This $20 billion ASX share provides medical imaging software, with its Visage platform helping hospitals and healthcare systems view and analyse medical images.

What makes it difficult to copy is the combination of sophisticated technology, deep integration into hospital workflows and the significant switching costs involved in replacing critical clinical software.

Importantly, Pro Medicus estimates it has captured only around 11% of the US market, leaving a substantial runway for expansion.

During FY26, the company signed 10 new contracts worth at least $407 million and renewed all six existing contracts, worth $141 million over five years. Customers are also increasingly adopting its cardiology offering.

Nine of 15 TradingView analysts rate the shares a buy or strong buy. The average price target of $212.65 implies roughly 12% upside, while Bell Potter retains a buy rating and $226 target.

NextDC: betting on the AI boom

NextDC operates data centres, increasingly vital infrastructure for the digital economy. As AI, cloud computing, streaming and other data-intensive applications expand, demand for secure data centre capacity should keep rising.

This ASX share is expanding its footprint, including its first AI-ready facility in Kuala Lumpur and facilities designed specifically for AI workloads, such as its S6 Sydney data centre.

The opportunity has attracted strong broker support. Nine of 10 TradingView analysts rate NextDC shares a buy or strong buy.

The average price target is $21.60, implying around 59% upside, while UBS maintains a buy rating with a $22.55 target.

Foolish takeaway

None of these ASX shares is a pure textbook Warren Buffett investment. But all three possess qualities Buffett appreciates: market leadership, competitive advantages and potentially significant long-term cash-generation opportunities.

For investors prepared to accept the risks, these beaten-down ASX shares could offer significant upside if their growth stories remain intact.

The post Warren Buffett’s playbook: 3 cheap ASX shares that could soar up to 60% appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Would I buy NEXTDC shares after its strong FY26 results?
• 2 ASX data centre stocks rated a buy
• 3 ASX 200 shares to buy post-results: broker
• 9 ASX 200 shares with strengthened buy ratings this week

Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

DroneShield Ltd (ASX: DRO)

According to a note out of Bell Potter, its analysts have retained their buy rating on this counter-drone technology company’s shares with a trimmed price target of $2.40. The broker highlights that DroneShield’s first-half underlying EBITDA was a material miss. However, Bell Potter points out that its first-half revenue was in line with expectations and its updated committed revenue for FY 2026 now stands at $240 million. It believes that this means DroneShield is likely to achieve the top-end of its guidance range for the year. This is especially the case given the new proprietary RfAI-3 software engine and flagship next-generation RfRecon hardware are generating strong early customer interest. It expects the high-moat next gen products to drive continued contract wins, particularly from Europe. The DroneShield share price ended the week at $1.75.

Sigma Healthcare Ltd (ASX: SIG)

A note out of Morgans reveals that its analysts have upgraded this pharmacy chain operator’s shares to a buy rating with a trimmed price target of $3.19. This follows the release of its FY 2026 result, which was in line with expectations. Morgans was also pleased with Sigma’s guidance for FY 2027, noting that it is targeting double-digit revenue and earnings growth. In light of this, the broker feels that recent share price weakness is overdone and provides investors with an opportunity to buy shares at an attractive price. The Sigma Healthcare share price was fetching $2.68 at Friday’s close.

WiseTech Global Ltd (ASX: WTC)

Another note out of Morgans reveals that its analysts have retained their buy rating on this logistics technology company’s shares with a slightly reduced price target of $62.50. It highlights that WiseTech Global delivered a result that was largely in line with its expectations in FY 2026. And while CargoWise revenue growth was softer than expected, it was pleased with the annualised run-rate savings of ~US$115 million. The broker was also pleased to see management guiding to improving margins in FY 2027, which has led to an upgrade to its estimates for the year. The WiseTech Global share price ended the week at $40.61.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares scoring upgrades in the final week of earnings season
• Buy, hold, sell: Netwealth, Sigma Healthcare, and Wesfarmers shares
• 3 ASX 200 shares to buy post-results: broker
• 9 ASX 200 shares with strengthened buy ratings this week
• WiseTech shares are bouncing back. Is it time to buy?

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 materials and mining shares outperformed the other 10 market sectors last week.

Materials and mining stocks rose by a modest 2.5% over the week, according to CommSec data.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) closed out the week up 0.37% to 9,092.3 points on Friday.

Only four sectors finished in the green last week.

Let’s review.

ASX materials and mining shares led the market

As earnings season continued last week, several ASX mining shares reached new record highs.

Among them was BHP Group Ltd (ASX: BHP), which reset its historical high at $68.77 per share on Wednesday.

BHP is not only the largest miner on the market, it’s also the most valuable company of the entire ASX 200.

The BHP share price finished the week 3.28% higher at $67.30 per share.

The Fortescue Ltd (ASX: FMG) share price increased 1.8% to $18.07.

Rio Tinto Ltd (ASX: RIO) shares lifted 1.52% to $178.04.

Diversified ASX 200 miner, Mineral Resources Ltd (ASX: MIN), fell 1.25% to $65.46 per share.

The South32 Ltd (ASX: S32) share price leapt 7.36% to $5.25 on Friday.

Pure-play ASX copper share Sandfire Resources Ltd (ASX: SFR) surged 7.81% to $23.34 per share.

ASX gold share Northern Star Resources Ltd (ASX: NST) ascended 3.38% to $24.78.

Newmont Corporation CDI (ASX: NEM) shares rose 1.64% to $182.80.

The Evolution Mining Ltd (ASX: EVN) share price closed at $15.67, up 2.08%.

ASX 200 lithium stock PLS Group Ltd (ASX: PLS) jumped 5.72% to $5.36 per share.

The IGO Ltd (ASX: IGO) share price rose 2.63% to $8.58.

Lynas Rare Earths Ltd (ASX: LYC) shares edged 0.31% higher to $16.26.

Among the non-mining ASX 200 materials shares, BlueScope Steel Ltd (ASX: BSL) rose 1.48% to $30.86.

The James Hardie Industries plc (ASX: JHX) share price fell 3.31% to $41.42.

Orica Ltd (ASX: ORI) shares decreased 0.81% to $21.98.

Several mining shares are among 37 companies going ex-dividend next week.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Materials (ASX: XMJ)	2.5%
Consumer Staples (ASX: XSJ)	1.82%
Healthcare (ASX: XHJ)	1.11%
Industrials (ASX: XNJ)	0.14%
Financials (ASX: XFJ)	(0.30%)
Utilities (ASX: XUJ)	(0.46%)
Information Technology (ASX: XIJ)	(0.47%)
Energy (ASX: XEJ)	(1.37%)
Consumer Discretionary (ASX: XDJ)	(1.7%)
A-REIT (ASX: XPJ)	(1.94%)
Communication (ASX: XTJ)	(2.23%)

The post ASX 200 mining shares outperform in final week of earnings season appeared first on The Motley Fool Australia.

More reading

• If I invest $15,000 in Fortescue shares, how much passive income will I receive in 2027?
• Why gold stocks have regained their shine: Expert
• Could ASX shares crash? 5 questions every investor should ask now
• Here are the top 10 ASX 200 shares today
• Northern Star shares are closing in on $25. Can the rally keep going?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Fortescue Ltd (ASX: FMG) shares has been very rewarding for passive income over the last five years, as the ASX mining share has made the most of iron ore price strength at various times.

As an ASX iron ore share, the company has a lot of operating leverage when the commodity price rises.

Production costs don’t typically change much month to month, so a rise in the iron ore price can boost revenue, and most of that can flow straight into the net profit. However, the reverse can be true when iron ore prices fall.

Fortescue can control how much iron ore it produces, but it has little control over what happens with the iron ore price. Let’s take a look at what analysts think could happen with the Fortescue dividend in FY27.

Dividend projection for FY27

Forecast payments are not guarantees for shareholders. The dividend could be better than projected. It could also be lower than expected.

But given the current iron price and forecasts, analysts are predicting that the FY27 payout will be lower than the annual payment for the 2026 financial year.

In FY26, Fortescue grew revenue by 9% to US$17 billion, underlying EBITDA (EBITDA explained) grew by 9% to US$5.6 billion, and underlying net profit after tax (NPAT) rose 3% to US$3.45 billion.

However, due to foreign currency fluctuations, the underlying earnings per share (EPS) fell by 2% in Australian dollar terms to A$1.66. This led to a 2% reduction in the full-year dividend to A$1.08 per share.

According to the projection on Commsec, owners of Fortescue shares could see the annual dividend payment decline to AUD 85.9 cents in FY27.

At the time of writing, that potential payout translates into a dividend yield of 4.8% excluding franking credits and 6.8% including franking credits.

Let’s see what would happen if someone invested $15,000 into Fortescue shares.

Potential payout with $15,000 invested in Fortescue shares

At the time of writing, an investor would be able to buy 836 Fortescue shares with $15,000.

Assuming the ASX mining share does deliver the projected payout, then owning 836 Fortescue shares could possibly deliver A$718 cash and another A$307.77 of franking credits for a combined total of around $1,026 of grossed-up dividend income, including the franking credits.

Is this the right time to invest? Analysts seem mixed on the business. According to Commsec, there are currently seven sell ratings on the business, eight hold ratings and two buy ratings.

Overall, experts are leaning more negative than positive, so it could be a good idea to consider other ASX share ideas.

The post If I invest $15,000 in Fortescue shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn from $500,000 in superannuation?
• 37 ASX shares going ex-dividend next week
• How much is needed in superannuation for $2,500 in weekly passive income?
• Should I invest $10,000 into Fortescue shares?
• Here’s the dividend forecast out to 2028 for Fortescue shares

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Not every ASX exchange traded fund (ETF) is designed to be a quiet core holding.

Some are built around faster-moving parts of the market.

That can mean more volatility, but it can also mean exposure to themes that could become much larger over time.

With that in mind, here are three exciting ASX ETFs to watch.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF gives investors exposure to major Asian technology companies.

This is an interesting area because Asia is not just where a lot of technology is assembled. It is also home to some very large businesses involved in semiconductors, ecommerce, digital platforms, online entertainment, gaming, and consumer technology.

That gives the fund a different profile to US-focused technology ETFs.

It can provide exposure to companies tied to Asian consumers, regional digital infrastructure, and important parts of the global technology supply chain.

This ASX ETF is unlikely to be a smooth ride. Regulation, geopolitics, currency movements, and sentiment toward China and Asian markets can all have a big impact.

But for investors wanting technology exposure beyond the usual US names, this fund could be one to watch.

Betashares Crypto Innovators ETF (ASX: CRYP)

The Betashares Crypto Innovators ETF is another ASX ETF with plenty of excitement attached to it.

Importantly, this fund does not invest directly in cryptocurrencies.

Instead, it gives investors exposure to listed companies involved in the crypto economy. That can include crypto exchanges, bitcoin miners, digital asset infrastructure businesses, and other companies connected to blockchain adoption.

This makes it a more indirect way to gain exposure to the theme.

The crypto sector can be extremely volatile, and investor sentiment can change very quickly. When digital asset prices rise, companies exposed to the industry can attract strong interest. When conditions turn, the falls can be sharp.

That means this ASX ETF is probably better suited to investors with a higher risk tolerance.

But if the crypto ecosystem continues to mature over the long term, the companies helping build and support it could become more important.

Global X FANG+ ETF (ASX: FANG)

A final ASX ETF to watch is the Global X FANG+ ETF.

This fund gives investors concentrated exposure to a small group of major global technology and growth shares.

These are companies linked to areas such as artificial intelligence, cloud computing, digital advertising, ecommerce, electric vehicles, social media, streaming, and consumer technology.

Many of these companies are already deeply embedded in how people work, shop, communicate, and entertain themselves.

But concentration cuts both ways. When mega-cap technology shares are in favour, this ETF can perform very strongly. When valuations come under pressure, it can fall quickly.

Even so, for investors wanting targeted exposure to some of the most influential growth companies in the world, the Global X FANG+ ETF remains an exciting ASX ETF to keep on the watchlist.

The post 3 exciting ASX ETFs to watch appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs for Aussie investors in September
• 3 growth focussed ASX ETFs that could beat the market in FY27
• 5 amazing ASX ETFs for Australian investors in August
• 5 amazing ASX ETFs to buy with $500
• 3 ASX ETFs to buy with $3,000 this month

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some investors love watching the market. They check prices over breakfast, read broker notes at lunch, and know exactly what the S&P/ASX 200 index (ASX: XJO) is doing by mid-afternoon.

There is nothing wrong with that. But not everyone wants investing to become a second job.

The good news is that a strong ASX portfolio should not need constant attention. In fact, some of the best portfolios are built to be left alone most of the time.

Start with investments that do the work for you

The easiest way to reduce the need for constant decision-making is to own investments that already spread money across lots of companies.

ASX exchange traded funds (ETFs) can help here.

Funds such as the Vanguard MSCI Index International Shares ETF (ASX: VGS), iShares S&P 500 ETF (ASX: IVV), and the Vanguard Australian Shares Index ETF (ASX: VAS) give investors exposure to large collections of businesses in one trade.

That means an investor does not have to know which company will report the best result next month.

They are backing the long-term progress of markets rather than relying on one perfect stock pick.

Choose businesses that can compound quietly

Individual ASX shares can still have a place in a low-maintenance portfolio. But the type of company is important.

I would focus on businesses with strong market positions, repeat customers, pricing power, and long-term growth opportunities.

These are companies that can become more valuable over time without needing everything to go right each quarter.

Examples could include ResMed Inc. (ASX: RMD), Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), Wesfarmers Ltd (ASX: WES), and TechnologyOne Ltd (ASX: TNE).

They will still have weaker periods. No company avoids those. But if the long-term investment case remains intact, investors may not need to react to every share price move.

Avoid shares that require too much watching

Some ASX shares need constant monitoring. That might be because they carry too much debt, rely on commodity prices, need regular capital raisings, or have business models that are still unproven.

These shares can work out well, but they often demand more attention.

For investors who want a portfolio they can leave alone for longer periods, it may be better to avoid making these positions too large.

A portfolio becomes easier to live with when it is not filled with companies that can change dramatically from one update to the next.

Let dividends help

Dividends can also make a portfolio feel more productive.

Income from shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), Woolworths Group Ltd (ASX: WOW), and Charter Hall Long WALE REIT (ASX: CLW) can provide cash flow while investors wait.

That cash can be taken as income or reinvested to buy more shares.

Over time, reinvested dividends can quietly add to returns without the investor needing to do much at all.

Set a review schedule

A low-maintenance portfolio does not mean ignoring everything forever. It just means checking it sensibly.

For many investors, a proper review every six or 12 months may be enough. That review can ask a few simple questions.

Is the portfolio still diversified? Are the main holdings still doing what they were bought to do? Has any position become too large? Is there enough exposure to global shares, income, and long-term growth?

That is very different from watching every daily move. The aim is not to build a portfolio that never changes. It is to build one that does not need constant fixing.

For investors who want to build wealth without living inside their brokerage account, that could be a very good place to start.

The post How to build an ASX portfolio you do not need to check every day appeared first on The Motley Fool Australia.

More reading

• Why I think these boring ASX shares could build serious wealth
• Here are the top 10 ASX 200 shares today
• Coles stock vs Woolworths shares: Who had the better dividend this week?
• Buy, hold, sell: Netwealth, Sigma Healthcare, and Wesfarmers shares
• 9 ASX 200 shares with strengthened buy ratings this week

Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, ResMed, Technology One, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, Transurban Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, and Transurban Group. The Motley Fool Australia has recommended Goodman Group, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A decade gives an exchange-traded fund (ETF) plenty of time to ride through market cycles and benefit from long-term economic growth.

If I were choosing two Vanguard ETFs with that timeframe in mind, these would be high on my list.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

The VAE ETF gives investors exposure to Asian markets excluding Japan.

I like it because some of the world’s most important economies sit within this region, including China, India, Taiwan, and South Korea. The fund provides exposure to businesses across technology, financial services, manufacturing, consumer spending, and other industries.

Over the next decade, I think several long-term trends could work in its favour.

Rising household incomes can increase spending on financial products, travel, technology, healthcare, and consumer goods. Asia is also central to global semiconductor manufacturing and electronics supply chains, while India continues developing into a much larger part of the global economy.

I would expect plenty of bumps along the way. Political and regulatory changes can move Asian markets quickly, while currency movements add another source of volatility because the VAE ETF is unhedged.

But I think a 10-year timeframe gives investors a better chance to look beyond those shorter-term swings and focus on the region’s long-term development.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

My second choice would be the V500 ETF.

This relatively new Vanguard ETF tracks the S&P 500 Index, giving ASX investors exposure to around 500 of America’s largest listed companies across all major sectors.

I think the attraction here goes beyond simply owning US shares. Many of the companies inside the index sell products and services around the world.

This means investors gain exposure to global spending on areas such as technology, healthcare, consumer products, financial services, and industrial development through one investment.

I also like that the S&P 500 can evolve. A decade is long enough for today’s corporate leaders to strengthen their positions, lose ground, or be overtaken by businesses that are much smaller today. An index fund adjusts as the market changes rather than asking investors to identify every future winner themselves.

For someone who wants a simple core holding with substantial long-term growth potential, I think the V500 ETF makes a lot of sense.

Foolish takeaway

I would be happy to buy both Vanguard ETFs and leave them invested for the next decade.

The VAE ETF gives me access to the long-term development of Asia, while the V500 ETF provides a simple way to own many of America’s leading businesses.

I think both offer compelling opportunities for investors prepared to stay patient through the inevitable market swings.

The post 2 Vanguard ETFs I’d buy and hold for a decade appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs are on my watchlist
• 3 strong Vanguard ETFs to buy with $3,000
• Which Vanguard ETFs could be strong buys now?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) shares have both underperformed the 2.3% 12-month gain posted by the S&P/ASX 200 Index (ASX: XJO) earlier this week.

In fact, both of the big four ASX 200 bank stocks are well into the red since this time last year.

With CBA shares recently trading for $157.08 apiece, Australia’s biggest bank stock is down 7.8% in 12 months.

Westpac shares have fared even worse, recently down 11.3% for the year at $33.95 each.

Now we shouldn’t leave out the fully franked dividends both banks have paid out over the full year. CBA shares trade on a fully franked dividend yield of 3.2%, while Westpac shares trade on a fully franked dividend yield of 4.5%.

Though even with these dividends in mind, the accumulated value of both ASX 200 bank stocks has gone backwards over the past year.

And looking ahead, Red Leaf Securities’ John Athanasiou expects they’ll both continue to struggle (courtesy of The Bull).

Here’s why.

Time to exit CBA shares?

“CBA shares deserve to trade at a premium given its dominant retail franchise, strong technology platform, solid deposit base and consistent execution,” Athanasiou said.

Summarising his sell recommendation on CBA shares, he concluded:

However, Australian banking remains a mature industry, with intense competition across mortgages and deposits limiting the potential for outsized earnings growth. At a premium valuation, investors are paying a higher price for quality, leaving little room for disappointment.

After a substantial re-rating, investors may be better served taking some profits and reallocating capital towards businesses offering stronger growth at more reasonable valuations.

Which brings us to…

Westpac shares could be facing competitive headwinds

Athanasiou also issued a sell recommendation on Westpac shares.

“The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive,” he said. “Mortgage pricing is aggressive, deposit competition remains intense, and the scope for sustained margin expansion appears limited.”

And Westpac’s 4.5% dividend yield isn’t enough to tip the scales for Athanasiou.

He noted:

Westpac’s dividend remains attractive, but investors should also consider opportunity cost.

We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.

Another expert is bearish on CBA shares

Athanasiou wasn’t the only analyst to advise selling CBA shares this week.

He was joined by Alto Capital’s Tony Locantro.

“The CBA remains Australia’s leading banking franchise and delivered another strong result in full year 2026,” Locantro said.

Commenting on those strong results, he said:

Cash net profit after tax of $10.982 billion was up 7% on the prior corresponding period. The full-year dividend of $5.05 a share, fully franked, was up 4%. Strong lending, deposit growth and a robust capital position continue to demonstrate the quality of the business.

As for his sell recommendation, Locantro concluded:

However, operating expenses and loan impairment expenses increased.

The CBA continues to trade at a substantial valuation premium to domestic banking peers. Although the underlying business remains strong, the premium valuation leaves little room for disappointment and may potentially constrain prospective returns.

The post Sell alert! Why this expert is calling time on Westpac and CBA shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX blue-chip shares can be among the most appealing picks for passive income due to their reliably high dividend yields.

The strongest businesses usually have the best balance sheets, highest margins and the best grip on their market share.

I’m going to talk about two ideas for dividends that I’d call ASX blue-chip shares.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia with its Medibank and ahm brands. The company also has a growing healthcare division following multiple acquisitions.

Healthcare is a defensive industry with largely consistent demand, helping Medibank generate defensive profits that then fund consistent dividends.

However, the Medibank dividend isn’t being maintained at the same level. Aside from 2020, its annual payout has increased every year during the past decade.

In the recent FY26 result, Medibank increased its annual payout by 6.7% to 19.2 cents per share. That came after a 6.7% rise in group operating profit and a 27.5% rise in net profit.

In FY27, the business is aiming to grow its market share in a disciplined way, including improved volume momentum for the Medibank brand. It also expects its non-resident private health insurance segment to deliver solid gross profit growth. The Medibank Health segment expects to deliver around 25% profit growth in FY27 thanks to Better Medical.

At the time of writing, its FY26 payout translates into a grossed-up dividend yield of 5.7%, including franking credits.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that focuses its investments on ASX blue-chip shares. The LIC structure allows WAM Leaders to turn the pleasing investment returns it makes into a growing annual dividend.

Impressively, its portfolio has returned an average of 12.1% per year since inception in May 2026, before fees, expenses and taxes. That level of return has allowed the business to increase its annual dividend every year since FY17. The FY26 annual dividend was increased by 2.1% to 9.6 cents per share.

That payment translates into a FY26 grossed-up dividend yield of 10.2%, including franking credits, at the time of writing. That’s an incredibly high (and attractive) payout, in my opinion.

Some of the businesses in the portfolio that it had a large active position in at the end of July 2026 included Mirvac Group (ASX: MGR), Stockland Corporation Ltd (ASX: SGP), Rio Tinto Ltd (ASX: RIO), Amcor (ASX: AMC) and GPT Group (ASX: GPT).

However, there were also typical names in the holdings such as Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG) and BHP Group Ltd (ASX: BHP).

I think its ASX blue-chip share strategy will help it continue to deliver pleasing returns over the long term.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended BHP Group, Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.